What is a bookkeeper?
You never miss them in either big or small enterprises around us. However, for a quicker understanding, we might want to ask, instead, what does a bookkeeper does on a daily basis. That will answer questions on what exactly does a bookkeeper does. Or else, what does a bookkeeper do for a small business.
In an office set up, the bookkeeper undertakes several accounting duties and responsibilities. Most of what they do is handling the financial records of a company. This article gives a quick brief of who these people are. Also, their responsibilities, and so their importance in any business set up.
What does a bookkeeper do on a daily basis?
The answer to this question narrows down to the duties of an accountant. Accountancy is a distinct profession within the business field. It helps effectively equips a commerce learner with the necessary skills to undertake accounting duties. Key among these duties is bookkeeping.
Below are the critical duties and responsibilities of a bookkeeper. Remember, these are general duties; however, still one may specialize in one to be an expert.
- Ensure quality recording of all financial transactions
- Be in charge of the ledger – updating it for every transaction
- Reconciling entries into an accounting system
- Credits and debts recording
- Balancing sheets
- Using the local law formula in presenting financial reports
- Monitor any inconsistencies from the anticipated budget
Relevant Skills and knowledge
- A primary knowledge of accounting basics
- Following the accounting and work ethics
- Knowledge of different accounting framework, U.S GAAP, IFRS, or any other
- Data entry competency
- High level of accuracy and keenness
- Proficiency in various accounting software, Microsoft Excel, XERO, Zoho, Quickbooks, Fresh Books
- organization and professionalism skills
- A one year of experience or associates degree
What does a bookkeeper do for a small business?
The duties of a bookkeeper never change, at least not with the business type. Small businesses so much also need services of a bookkeeper. Like even the more significant business, they borrow, spend, and buy assets. Keeping all these records is very crucial for the growth of a business.
What exactly does a bookkeeper do for a small business will entail the following;
- Keeping records of financial transaction
- Filling tax on behalf of the business
- Reconciling financial records
- Generating financial reports
- Data entry
- Handling payroll
- Preparation of financial statements
- Managing cash flow
- Manage bank statements and feeds
- Daily account management
- Sending and managing invoices
- Perform Stocktake
The duties and responsibilities of a here are intertwined. Thus in most cases, they will multitask.
Difference between Bookkeeper and Accountant?
It is a little tricky for many to differentiate between these two – the difference is only a thin line. Although, in simplest terms, a bookkeeper only lays the ground for an accountant. What a bookkeeper does is registering the financial transaction in a ledger. Sometimes also, the filling can be to an accounting system. An accountant, on the other hand, will find them to balance sheets and later produce a statement of cash flow.
Recent trends, although, embrace multipurpose working mode. Thus a highly competent bookkeeper can handle all the accounting tasks and vice versa. However, still there exists a clear difference separating these two.